RIM Short Sellers Pile In Ahead of Earnings

Short sellers aren’t showing much faith in Research In Motion’s turnaround story.

As the stock has more than doubled in price since September, short sellers have been piling in, betting the company’s fortunes will again fade. With earnings scheduled for before the opening bell Thursday morning, BlackBerry bears are in for an important test.

The percentage of RIM shares on loan — a proxy for short-selling activity — stands at about 30% of the combined Canadian and New York stock listings. That’s nearly a record high for the BlackBerry maker, data from securities financing tracker Markit show. Short sellers borrow shares in hopes of buying them back cheaper at a later date, aiming to profit from a price decline.

“Short sellers remain unconvinced of the rally,” Markit director Alex Brog said in a chat with MarketBeat.